In an internal memo obtained by The Associated Press, August Hehemann said the agency's net income is expected to shrink in the fiscal year that started July 1, to $96 million from $121 million in the previous year.

Hehemann proposes that the markup be raised from 30 percent to 35 percent to offset double-digit increases in expenses such as pensions, health care and computer upgrades.

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Chairman Joseph "Skip" Brion said the three-member board has privately discussed Hehemann's analysis, but that there's no proposal before the board to increase the markup. He said he regards any such action as a last resort.

Former longtime U.S. Rep. Tim Holden, a Schuylkill County Democrat who also represented Berks County, is one of the three board members.

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